Podcast
Questions and Answers
Which action most effectively supports engagement planning for a payroll audit?
Which action most effectively supports engagement planning for a payroll audit?
- Limiting scope to employee benefits regardless of risk.
- Interviewing only the CFO regarding payroll processes.
- Starting the audit without considering risk appetite.
- Reviewing prior audit reports and changes in payroll regulations. (correct)
During the planning phase, if auditors identify a system with outdated access controls, what is the MOST appropriate next step?
During the planning phase, if auditors identify a system with outdated access controls, what is the MOST appropriate next step?
- Create a list of travel schedules for site visits.
- Prepare detailed expense reports for each audit team member.
- Obtain management's signed approval for the audit plan.
- Define the objectives, scope, and procedures to test the design and effectiveness of controls. (correct)
An internal auditor is planning an engagement involving third-party vendors. Which area represents a key risk to consider?
An internal auditor is planning an engagement involving third-party vendors. Which area represents a key risk to consider?
- Contract management and data privacy compliance (correct)
- Customer satisfaction scores
- Annual budget variances
- Board approval procedures
What is the MOST relevant factor when determining engagement evaluation criteria?
What is the MOST relevant factor when determining engagement evaluation criteria?
Which method would MOST effectively evaluate the efficiency of a control?
Which method would MOST effectively evaluate the efficiency of a control?
An auditor is assessing IT general controls. What aspect is MOST important to include in the audit procedures?
An auditor is assessing IT general controls. What aspect is MOST important to include in the audit procedures?
Which approach would BEST assess the effectiveness of a segregation of duties control?
Which approach would BEST assess the effectiveness of a segregation of duties control?
Which analytical technique is MOST appropriate for identifying unusual payment patterns over time in an accounts payable audit?
Which analytical technique is MOST appropriate for identifying unusual payment patterns over time in an accounts payable audit?
What is a key consideration when determining audit procedures for an IT system audit?
What is a key consideration when determining audit procedures for an IT system audit?
An auditor is performing a risk assessment for a decentralized organization. Which factor should be prioritized?
An auditor is performing a risk assessment for a decentralized organization. Which factor should be prioritized?
When planning a procurement audit, which process risk should be evaluated FIRST?
When planning a procurement audit, which process risk should be evaluated FIRST?
Which action BEST reflects adequate supervision during fieldwork?
Which action BEST reflects adequate supervision during fieldwork?
An auditor discovers that employees frequently override automated controls. What should the auditor do NEXT?
An auditor discovers that employees frequently override automated controls. What should the auditor do NEXT?
What type of evidence is generally considered MOST reliable during an audit?
What type of evidence is generally considered MOST reliable during an audit?
A finding reveals that sales staff bypass discount approval policies. What action should be prioritized FIRST?
A finding reveals that sales staff bypass discount approval policies. What action should be prioritized FIRST?
Which procedure would BEST test the adequacy of business continuity plans?
Which procedure would BEST test the adequacy of business continuity plans?
How should an auditor determine the sufficiency of audit evidence?
How should an auditor determine the sufficiency of audit evidence?
Which of the following BEST supports documenting an engagement work program?
Which of the following BEST supports documenting an engagement work program?
What tool would MOST effectively monitor and report real-time control exceptions related to financial transactions?
What tool would MOST effectively monitor and report real-time control exceptions related to financial transactions?
Which type of evidence BEST supports an audit conclusion?
Which type of evidence BEST supports an audit conclusion?
Flashcards
Effective engagement planning for payroll audits?
Effective engagement planning for payroll audits?
Reviewing past audits and changes in regulations.
Next step after identifying outdated access controls?
Next step after identifying outdated access controls?
Outlining objectives, scope, and procedures to test controls.
Key risk with third-party vendors?
Key risk with third-party vendors?
Managing contracts and ensuring data privacy is adhered to.
Most relevant for engagement evaluation criteria?
Most relevant for engagement evaluation criteria?
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Evaluate the efficiency of a control?
Evaluate the efficiency of a control?
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Most important in IT general procedures?
Most important in IT general procedures?
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Assessing segregation of duties control?
Assessing segregation of duties control?
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Technique that identifies unusual payment patterns?
Technique that identifies unusual payment patterns?
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Main consideration for IT system audit procedures?
Main consideration for IT system audit procedures?
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Prioritize a risk assessment for a decentralized organization?
Prioritize a risk assessment for a decentralized organization?
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Evaluate first in a procurement audit?
Evaluate first in a procurement audit?
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Adequate supervision during fieldwork?
Adequate supervision during fieldwork?
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Auditor notices override automated controls, then?
Auditor notices override automated controls, then?
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Most reliable evidence during an audit?
Most reliable evidence during an audit?
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Sales bypass discount policies, what action first?
Sales bypass discount policies, what action first?
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Supports documenting an engagement program?
Supports documenting an engagement program?
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Test the adequacy of business continuity plans?
Test the adequacy of business continuity plans?
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Tool to effectively monitor and report real-time control exceptions?
Tool to effectively monitor and report real-time control exceptions?
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How to determine sufficiency of audit evidence?
How to determine sufficiency of audit evidence?
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Evidence for audit conclusion?
Evidence for audit conclusion?
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Study Notes
- For effective payroll audit engagement planning, reviewing prior audit reports and changes in payroll regulations is most helpful.
- When outdated access controls are identified during the planning phase, defining objectives, scope, and procedures to test control design and effectiveness is the next step.
- When planning an engagement with third-party vendors, contract management and data privacy compliance should be a key risk area for internal auditors.
- Regulatory requirements and internal policies are the most relevant factors in determining engagement evaluation criteria.
- The efficiency of a control can be most effectively evaluated by measuring the cost and time it takes to operate.
- When assessing IT general controls, backup and recovery procedures are most important to include.
- The effectiveness of a segregation of duties control is best assessed by performing data analytics on access logs and transactions
- Trend analysis is the most appropriate analytical technique for identifying unusual payment patterns over time in an accounts payable audit.
- Firewall and network security protocols are key considerations when determining audit procedures for an IT system audit.
- When performing a risk assessment for a decentralized organization, geographic diversity of operations should be prioritized.
- In planning a procurement audit, purchase requisition approvals process risk should be evaluated first.
- Providing guidance and reviewing documentation regularly reflects adequate supervision during fieldwork.
- When an auditor notices employees often override automated controls, the next step is to assess the root cause and control environment.
- Reports obtained from an independent system provides the most reliable evidence during an audit.
- If sales staff bypass discount approval policies, determining the cause and potential impact should be the first action taken.
- Examining results of recent disaster recovery tests is the best procedure to test the adequacy of business continuity plans.
- Audit evidence sufficiency is determined by whether it supports conclusions and withstands peer review.
- Linking each procedure to objectives and risks best supports documenting an engagement work program.
- Embedded audit modules is the best tool to most effectively monitor and report real-time control exceptions in financial transactions.
- Documents from an automated system with strong internal controls best support an audit conclusion.
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